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Costing

1. Which budget is prepared first of all?

[amp_mcq option1=”Cash budget” option2=”Master budget” option3=”Budget for the key factor” option4=”Flexible budget” correct=”option1″]

Detailed SolutionWhich budget is prepared first of all?

2. Labour turnover means:

[amp_mcq option1=”Turnover generated by labour” option2=”Rate of change in composition of labour force during a specified period” option3=”Either of the above” option4=”Both of the above” correct=”option4″]

Detailed SolutionLabour turnover means:

3. Contract costing is most appropriate method of costing for ________.

[amp_mcq option1=”construction industry” option2=”banking industry” option3=”textile mills” option4=”cement industry” correct=”option1″]

Detailed SolutionContract costing is most appropriate method of costing for ________.

4. Economic Batch Quantity is an important point to be determined in industries where . . . . . . . . costing is employed.

[amp_mcq option1=”job” option2=”batch” option3=”operation” option4=”output” correct=”option2″]

Detailed SolutionEconomic Batch Quantity is an important point to be determined in industries where . . . . . . . . costing is employed.

5. An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate

[amp_mcq option1=”annual irrelevant ordering costs” option2=”annual relevant carrying costs” option3=”annual relevant ordering costs” option4=”annual irrelevant carrying costs” correct=”option2″]

Detailed SolutionAn average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate

6. In income statement of merchandising costs, period cost includes all costs which are not related to

[amp_mcq option1=”cost of resale goods” option2=”cost of manufacturing goods” option3=”timed resale of goods” option4=”cost of purchased goods” correct=”option1″]

Detailed SolutionIn income statement of merchandising costs, period cost includes all costs which are not related to

7. A manager who is responsible for only cost of company belongs to

[amp_mcq option1=”cost center” option2=”revenue center” option3=”profit center” option4=”investment center” correct=”option1″]

Detailed SolutionA manager who is responsible for only cost of company belongs to

8. The process of grouping of costs according to some common characteristics ________.

[amp_mcq option1=”absorption” option2=”primary distribution” option3=”secondary distribution” option4=”classification” correct=”option4″]

Detailed SolutionThe process of grouping of costs according to some common characteristics ________.

9. . . . . . . . . is the oldest branch of accounting.

[amp_mcq option1=”Financial accounting” option2=”Cost accounting” option3=”Management accounting” option4=”None of these” correct=”option1″]

Detailed Solution. . . . . . . . is the oldest branch of accounting.

10. Material abstract is also known as . . . . . . . .

[amp_mcq option1=”material issue analysis sheet” option2=”bill of materials” option3=”stores ledger” option4=”None of the above” correct=”option4″]

Detailed SolutionMaterial abstract is also known as . . . . . . . .

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